A PYMNTS Company

Multistate Lawsuit Targets Novartis and Former Unit Sandoz Over Generic Drug Pricing

By  |  February 4, 2026
Novartis

A coalition of 42 U.S. states and territories has brought a new antitrust lawsuit accusing Swiss pharmaceutical giant Novartis and its former generics division Sandoz of coordinating to manipulate prices and divide up markets for a wide range of generic medicines, according to a statement from the attorneys general involved in the case.

    Get the Full Story

    Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — no additional logins required.

    yesSubscribe to our daily newsletter, PYMNTS Today.

    By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions.

    The complaint, filed in federal court in Connecticut, alleges that Novartis maintained significant control over Sandoz’s U.S. generics operations during the period in question and therefore should bear responsibility for practices that allegedly kept prices for dozens of off-patent drugs higher than they should have been, per a statement summarizing the filing. The lawsuit contends that these actions affected widely used medications relied on by consumers and public health programs across the country.

    For Sandoz, which has been seeking to reposition itself for growth through biosimilars and new high-volume generic products, the case could create a long-running legal overhang, according a statement from officials familiar with the litigation. For Novartis, the lawsuit revives scrutiny of a business it spun off in an effort to move beyond the generics market, per a statement outlining the companies’ recent corporate history.

    The legal action also has implications for states such as North Carolina, one of the plaintiffs in the case. The state has become a major hub for pharmaceutical research and manufacturing, particularly in and around the Triangle region, where large investments by drugmakers have helped drive economic growth over recent decades, according a statement from state economic development officials. Past reporting by WRAL News noted that a previous expansion by Novartis in North Carolina was expected to create jobs paying more than $100,000 on average and nearly double the company’s local workforce, per a statement at the time.

    Related: Pennsylvania AG Secures Millions in Drug Price-Fixing Case Against Generic Manufacturers

    The lawsuit asserts that Novartis and Sandoz, along with other unnamed generic manufacturers, “conspired with other generic manufacturers to fix prices, allocate markets and rig bids for 31 generic drugs,” according a statement released with the filing. That allegation goes to the heart of antitrust law, which is designed to prevent competitors from secretly coordinating in ways that harm consumers.

    The announcement of the new case coincided with a separate development in North Carolina, where the state resolved a similar price-fixing claim against two other drugmakers, Bausch and Lannett, resulting in a payment of nearly $18 million, per a statement from state officials. While that settlement closed one chapter of litigation, the broader multistate effort against alleged collusion in the generic drug industry is continuing, according a statement from the coalition leading the case.

    Together, the filings signal that state attorneys general remain focused on policing competition in the pharmaceutical market, even as major companies restructure and spin off divisions, per a statement accompanying the latest lawsuit.

    Source: WRAL